Flexible Production Systems Typically Involve Using Information Technology to Share

question 8

True/False

Flexible production systems typically involve using information technology to share the details of customer orders,programmable equipment to fulfill orders,and skilled people to carry out whatever tasks are necessary to fill an order.They are less complicated and require less cooperation than do mass production systems.

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Definitions:

Allocative Inefficiency

A situation where resources are not allocated optimally, leading to a loss of economic efficiency.

Marginal Cost

The incremental cost involved in producing one more unit of a good or service.

Pure Monopolist

A market structure where a single company exclusively controls the entire supply of a product or service without any competition.

MR = MC Output

The optimal output level for a firm where marginal revenue (MR) equals marginal cost (MC), commonly used to maximize profit.